Hess Midstream LP Reports Strong Q2 2025 Results

By Ahmed Jameison • Wednesday, July 30 15:36 • Permanent Link

Hess Midstream LP has reported estimated results for the second quarter of 2025, showcasing strong financial and operational performance. The company's net income for the second quarter of 2025 was $179.7 million, compared with $160.3 million for the same period in 2024. Adjusted EBITDA stood at $316.0 million, with net cash provided by operating activities totaling $276.9 million and adjusted free cash flow at $193.8 million.

Throughput volumes increased across various segments, with a 7% rise in gas processing, 9% in oil terminaling, and 11% in water gathering compared to the prior-year quarter.

In addition, the company completed an accretive $190.0 million repurchase of class B units of Hess Midstream Operations LP and a $10.0 million repurchase of class A shares of Hess Midstream LP. As a result, the quarterly cash distribution was increased to $0.7370 per class A share for the second quarter of 2025, representing a $0.0272 per class A share increase compared to the first quarter of 2025.

Hess Midstream also provided updated guidance for the full year 2025, reaffirming its throughput and adjusted EBITDA guidance, while updating its net income and adjusted free cash flow guidance to reflect an increase in expected interest expense and income tax expense resulting from ownership changes.

The company anticipates at least 5% annual distribution growth per class A share through 2027 and continues to prioritize financial strength with a long-term leverage target of 3x adjusted EBITDA.

Furthermore, capital expenditures for the second quarter of 2025 totaled $70.0 million, slightly lower than the $72.7 million in the prior-year quarter. The company also highlighted its operational expectations, reaffirming its guidance of approximately 10% growth in gas throughput volumes in 2026 and approximately 5% growth in oil throughput volumes in each of 2026 and 2027.

Hess Midstream's financial and operational results reflect its commitment to delivering value to shareholders while maintaining a focus on operational excellence and growth in the midstream energy sector. The market has reacted to these announcements by moving the company's shares 4.66% to a price of $43.17. Check out the company's full 8-K submission here.

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